By Staff Reporter
KARACHI: The government will increase ex-depot prices of high-speed diesel, kerosene and light diesel oil by as much as Rs9.50 a liter from November 16, while cutting the petrol price by around Rs2, according to people familiar with the preliminary calculations.
The adjustments, effective for the fortnight ending November 30, reflect a small upward move in international oil prices and exchange-rate effects, the people said. The final numbers are still being reviewed by the Finance Ministry and the Oil & Gas Regulatory Authority ahead of the formal announcement expected late Friday.
High-speed diesel, the fuel that powers most trucks, buses, trains and agricultural machinery, is projected to rise by about Rs9.50 a liter, or roughly 3.4%, taking the ex-depot price above Rs288 a liter from the current Rs278.44. Kerosene is seen increasing by Rs8.80 a liter (4.8%) and light diesel oil by Rs7.15 a liter (4.4%). Petrol, used primarily in motorcycles and private cars, is the only major product expected to fall, by roughly Rs2 a liter to about Rs263.50 from Rs265.45.
The changes come against a backdrop of still-elevated domestic fuel prices despite a partial rollback in recent months. Since June 1, the ex-depot price of petrol has risen a net Rs12.50 a liter and high-speed diesel Rs23 a liter, calculations based on fortnightly notifications show.
High-speed diesel is considered the most inflation-sensitive petroleum product because it dominates heavy transport and farm use. Any increase typically feeds quickly into freight rates and the cost of perishable goods. Transporters raised fares earlier this year after diesel climbed about Rs27 a liter between May and August and have not reduced them despite a subsequent Rs13-a-liter cut, industry officials have said.
Petrol and high-speed diesel remain the largest revenue generators for the government, with combined monthly sales averaging 700,000 to 800,000 tons, according to data compiled by the Oil Companies Advisory Council.
Kerosene, currently priced at Rs185 a liter, is still used in rural areas for cooking and lighting, while light diesel oil at Rs164 a liter powers some generators and small industrial engines. The final prices, which include petroleum levy, general sales tax and dealer margins, will be announced by the Finance Division after Prime Minister Shehbaz Sharif’s approval, as has been the practice since the government resumed fortnightly reviews.
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